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Digital economic activity and resilience for metros and small businesses during Covid-19

Karen Mossberger (), Nicholas F. Martini, Meredith McCullough and Caroline J. Tolbert
Additional contact information
Karen Mossberger: Arizona State University
Nicholas F. Martini: University of Iowa
Meredith McCullough: Arizona State University
Caroline J. Tolbert: University of Iowa

Small Business Economics, 2023, vol. 60, issue 4, No 18, 1699-1717

Abstract: Abstract The Covid-19 pandemic had an unequal impact across businesses and communities and rapidly accelerated digital trends in the economy. What role, then, did website use play in community resilience and small business outcomes? This article examines a new source of population data on domain name hosts to provide a unique measure of digital economic activity within communities. Seventy-five percent are commercial, including online-only, brick-and-mortar, small, and microbusinesses. With geolocated data on 20 million US domain name hosts, we investigate how their density (per 100 people) affected economic outcomes in the nation’s largest metros during the pandemic. Using monthly time series data for the 50 largest metropolitan areas, the domain host data is merged with the US Census Small Business Pulse Surveys and Chetty et al.’s Opportunity Insights data. Results indicate metros with higher concentrations of businesses with an online presence experienced more positive economic perceptions and outcomes from April to December 2020. This high-frequency, granular data on digital economic activity suggests that digitally enabled small and microbusinesses played an important role in local economic resilience and demonstrates how commercial data can be used to generate new insights in a fast-changing environment.

Keywords: Commercial data; Domain name hosts; Websites; Economic resilience; Digital entrepreneurship; Pandemic; 0180; 0330; R110 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-022-00674-x

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